PA: Equilibrium Income Determination

Which of the following is a component of aggregate demand?

• a. Consumption expenditure

• b. Investment expenditure

• c. Both a. and b.

• d. Only consumption expenditure

At the equilibrium level of income, AD will be equal to:

• a. Saving

• b. Investment

• c. Aggregate Supply

• d. None of these

• a. APC

• b. MPC

• c. APS

• d. MPS

• a. 200

• b. -200

• c. 0.5

• d. 1

Disposable income will be used for consumption and saving. True or False?

• True
• False